EFRAG welcomes the proposal of the IFRS Foundation to establish an Accounting Standards Advisory Forum as a multilateral technical discussion forum of an advisory nature.
In the Accounting Standards Advisory Forum (ASAF or the Forum), EFRAG envisages that different views will be debated at an early stage, and participants will gain understanding of how possible requirements are perceived by other members of the IFRS constituency. EFRAG also welcomes the fact that the proposed activities of ASAF will run alongside and complement the roles National Standard-Setters and regional bodies play in the IASB due process, research projects, seconding staff, IFRS IC input, outreach activities, field testing and post-implementation reviews.
EFRAG agrees that the Forum should be compact in size to allow for effective and efficient technical discussions. An appropriate balance in the composition of the Forum should support the ambition of the IASB of being the global standard setter while serving the objective of greater acceptability of the IASB’s proposals and final standards in jurisdictions where IFRS have been adopted.
EFRAG believes that representativeness in ASAF is important. Therefore it believes that, although the IFRS Foundation should allocate seats to regions, the allocation of the seats within the regions or jurisdictions should be the responsibility of the region or jurisdiction concerned, provided that criteria set by the IFRS Foundation are met. Each jurisdiction or region would have the responsibility to organise itself in order to ensure that it is representative of the views held in the region or jurisdiction at different stages of the international standard setting process.
EFRAG is ready, capable and willing to participate and help build a technically competent and representative delegation on behalf of Europe. EFRAG is willing to work in close cooperation and coordination within its Consultative Forum of Standard-Setters and the EC on the best way to provide a contribution to the proper and effective functioning of the Forum, on the basis of the experience acquired in the EFRAG-IASB meetings.
Finally, after careful consideration of comments received, EFRAG is recommending in its final comment letter further clarification: notably on the purpose of the Forum, the scope of the technical discussions that should be held in the Forum, the relationship with other advisory bodies of the IFRS Foundation and the operational processes of the Forum, including the Memorandum of Understanding.
Press release
Final comment letter
© EFRAG - European Financial Reporting Advisory Group
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article